Financial Insights

Profits tank 26%: Adani Wilmar Q4 results

Adani Group’s FMCG company, Adani Wilmar, has posted a 26% YoY decline in its profits. The profits for this quarter stood at Rs 234.3 crores against Rs 315 crores last year.

The company reported a growth of 40.2% in revenues as the figure for the year was Rs 14,960.2 crores. Even though FMCG sector has seen several problems due to the supply chain issues and Russia-Ukraine crisis, the company’s flagship brand ‘Fortune’ managed to record a 16% growth.

The company’s expenses grew 40.3% to Rs 14,726.7 crores. Out of all expenses, the cost of raw materials saw the greatest surge, jumping around 40% while other major expenses saw a 26% rise. The company’s consolidated operating profit grew 29% YoY to Rs 488 crores. 

The cause of its lower profits was because the profit last year was higher than it should have been due to a tax write back of Rs 93 crores on account of switching to the corporate tax regime. If the one time tax write back is adjusted, the profits of the company grew 39% YoY, instead of declining 26%.

The share of the company saw a selling pressure for the past few days as it fell around 12.37% in the last 3 days. The share currently trades around Rs 753 per share.

Highlight by Aman Agarwal.

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